Ibrahim Yusif gave Tema the lead after only nine minutes before Thomas Abbey restored parity for the Phobians three minutes into the second-half but Joseph Paintsil scored the match-winner minutes later.
"We prepared very well for the match against Tema Youth. The players recovered on time after the victory over Great Olympics for this encounter. The team's selection was spot on and our tactics were also good but my players made individual mistakes and that made things complicated for us," Nuttall said.
"Mistakes are bound to happen in football and such mistakes lead to our defeat. We could have gotten something at the end if we were concentrated throughout the game but it's unfortunate we left Tema empty handed," he added.
Hearts will lock horns with fierce rivals Asante Kotoko on Sunday in the first game of the Super Clash and Nuttall is optimistic his charges will recover ahead of the game.
“We are going to rest, return to training and prepare for the Kotoko game. My players will be ready for the clash and we'll try our best to return to winning ways. We know what is at stake so we will give out our all," he said.